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Presentation transcript:

INFORMATION NOT RELEASABLE TO THE PUBLIC UNLESS AUTHORIZED BY LAW: This information has not been publicly disclosed and may be privileged and confidential. It is for internal government use only and must not be disseminated, distributed, or copied to persons not authorized to receive the information. Unauthorized disclosure may result in prosecution to the full extent of the law. 1 Plan and Beneficiary Characteristics Associated with the Coverage Gap and Catastrophic Phase Confidence M. Gbarayor, Ph.D., MPH (ARS Response Card: Channel 41)

INFORMATION NOT RELEASABLE TO THE PUBLIC UNLESS AUTHORIZED BY LAW: This information has not been publicly disclosed and may be privileged and confidential. It is for internal government use only and must not be disseminated, distributed, or copied to persons not authorized to receive the information. Unauthorized disclosure may result in prosecution to the full extent of the law. 2 Disclosure “I, Confidence Gbarayor, declare no conflicts of interest or financial interests in any product or service mentioned in this presentation, including grants, employment, gifts, stock holdings, or honoraria.”

INFORMATION NOT RELEASABLE TO THE PUBLIC UNLESS AUTHORIZED BY LAW: This information has not been publicly disclosed and may be privileged and confidential. It is for internal government use only and must not be disseminated, distributed, or copied to persons not authorized to receive the information. Unauthorized disclosure may result in prosecution to the full extent of the law. 3 Learning Objective “Summarize 5-year trend, , in % of beneficiaries who hit the Part D coverage gap” Describe beneficiaries who exceed the initial coverage limit (ICL) in terms of plan and demographic characteristics

INFORMATION NOT RELEASABLE TO THE PUBLIC UNLESS AUTHORIZED BY LAW: This information has not been publicly disclosed and may be privileged and confidential. It is for internal government use only and must not be disseminated, distributed, or copied to persons not authorized to receive the information. Unauthorized disclosure may result in prosecution to the full extent of the law. 4 Overview Overall, a small percentage of Part D beneficiaries were fully exposed to the coverage gap Different benefit designs reduced the percent of beneficiaries who experienced the coverage gap and allowed beneficiary’s ability to select the best plan for them The share of Part D beneficiaries who reached the ICL and/or the catastrophic coverage phase, and the time to reach these thresholds varied by sub-group

INFORMATION NOT RELEASABLE TO THE PUBLIC UNLESS AUTHORIZED BY LAW: This information has not been publicly disclosed and may be privileged and confidential. It is for internal government use only and must not be disseminated, distributed, or copied to persons not authorized to receive the information. Unauthorized disclosure may result in prosecution to the full extent of the law. 5 Methodology Data Sources Standard Analytical File (SAF) of prescription drug event data (PDE) Limited to Part D covered products Common Medicare Environment (CME) Used to identify beneficiary LIS status and other characteristics Part D Plan Benefit Information

INFORMATION NOT RELEASABLE TO THE PUBLIC UNLESS AUTHORIZED BY LAW: This information has not been publicly disclosed and may be privileged and confidential. It is for internal government use only and must not be disseminated, distributed, or copied to persons not authorized to receive the information. Unauthorized disclosure may result in prosecution to the full extent of the law. 6 Standard Benefit 2010 YTD Gross Covered Drug Costs $310 $2,830$6,440 Beneficiary Liability Deductible Coverage Gap 15% Plan Pays 5% Coinsurance Medicare Pays Reinsurance 25% Coinsurance Direct Subsidy/ Beneficiary Premium $4,550 TrOOP 80% Reinsurance 75% Plan Pays $310$940 Pre-ICL Coverage Gap Catastrophic ICL

INFORMATION NOT RELEASABLE TO THE PUBLIC UNLESS AUTHORIZED BY LAW: This information has not been publicly disclosed and may be privileged and confidential. It is for internal government use only and must not be disseminated, distributed, or copied to persons not authorized to receive the information. Unauthorized disclosure may result in prosecution to the full extent of the law. 7 Methodology: Overview Coverage Gap Plan Specified ICL Defined Standard ICL Catastrophic Coverage Catastrophic Codes

INFORMATION NOT RELEASABLE TO THE PUBLIC UNLESS AUTHORIZED BY LAW: This information has not been publicly disclosed and may be privileged and confidential. It is for internal government use only and must not be disseminated, distributed, or copied to persons not authorized to receive the information. Unauthorized disclosure may result in prosecution to the full extent of the law. 8 Coverage Gap

INFORMATION NOT RELEASABLE TO THE PUBLIC UNLESS AUTHORIZED BY LAW: This information has not been publicly disclosed and may be privileged and confidential. It is for internal government use only and must not be disseminated, distributed, or copied to persons not authorized to receive the information. Unauthorized disclosure may result in prosecution to the full extent of the law. 9 Methodology: Coverage Gap Defined Standard ICL Set Defined Standard ICL $2,250 in 2006 $2,400 in 2007 $2,510 in 2008 $2,700 in 2009 $2,830 in 2010

INFORMATION NOT RELEASABLE TO THE PUBLIC UNLESS AUTHORIZED BY LAW: This information has not been publicly disclosed and may be privileged and confidential. It is for internal government use only and must not be disseminated, distributed, or copied to persons not authorized to receive the information. Unauthorized disclosure may result in prosecution to the full extent of the law. 10 Methodology: Coverage Gap (continued) Plan Specific ICL Gross costs accumulated within the benefit year for each beneficiary by date of service Gross Costs = sum of ingredient cost, dispensing fee, and sales tax The claim in which the accumulated gross cost exceeded the plan’s ICL was identified

INFORMATION NOT RELEASABLE TO THE PUBLIC UNLESS AUTHORIZED BY LAW: This information has not been publicly disclosed and may be privileged and confidential. It is for internal government use only and must not be disseminated, distributed, or copied to persons not authorized to receive the information. Unauthorized disclosure may result in prosecution to the full extent of the law Coverage Gap Overview Overall, 28.2% (8.4M) of all Part D enrollees reached their ICL in 2010 When limited to non-LIS, 12.5% (3.7M) of all enrollees reached their ICL 9.3% (2.7M) of all enrollees were fully exposed to the coverage gap when non-LIS beneficiaries with some type of coverage in the gap were excluded

INFORMATION NOT RELEASABLE TO THE PUBLIC UNLESS AUTHORIZED BY LAW: This information has not been publicly disclosed and may be privileged and confidential. It is for internal government use only and must not be disseminated, distributed, or copied to persons not authorized to receive the information. Unauthorized disclosure may result in prosecution to the full extent of the law. 12 Decrease from 2007 to 2010 in Percent of Beneficiaries Who Entered Coverage Gap

INFORMATION NOT RELEASABLE TO THE PUBLIC UNLESS AUTHORIZED BY LAW: This information has not been publicly disclosed and may be privileged and confidential. It is for internal government use only and must not be disseminated, distributed, or copied to persons not authorized to receive the information. Unauthorized disclosure may result in prosecution to the full extent of the law. 13 Larger Share of LIS Beneficiaries in 2010 Coverage Gap 2010 Part D Coverage Gap Entry by LIS Status * Overall Percent of Beneficiaries Reaching Their 2010 Initial Coverage Limit. Total Population= 18.4M Non-LIS Beneficiaries and 11.3M LIS Beneficiaries in Part D for 2010 Year 28.2%*

INFORMATION NOT RELEASABLE TO THE PUBLIC UNLESS AUTHORIZED BY LAW: This information has not been publicly disclosed and may be privileged and confidential. It is for internal government use only and must not be disseminated, distributed, or copied to persons not authorized to receive the information. Unauthorized disclosure may result in prosecution to the full extent of the law. 14 Beneficiaries Fully Exposed to the Coverage Gap Non-LIS Beneficiaries with no gap coverage Excludes beneficiaries in enhanced alternative plans who have additional coverage in the gap for Part D covered drugs Exposed to 100 percent cost sharing in the coverage gap Fully responsible for their drug costs

INFORMATION NOT RELEASABLE TO THE PUBLIC UNLESS AUTHORIZED BY LAW: This information has not been publicly disclosed and may be privileged and confidential. It is for internal government use only and must not be disseminated, distributed, or copied to persons not authorized to receive the information. Unauthorized disclosure may result in prosecution to the full extent of the law. 15 Decrease from 2007 to 2010 in Percent of Non-LIS Beneficiaries Fully Exposed to Coverage Gap * Does not account for other types of coverage provided by other payers, such as State Pharmaceutical Assistance Programs. n = Total Number of Non-LIS Beneficiaries Exposed to Covered Gap in Each Year.

INFORMATION NOT RELEASABLE TO THE PUBLIC UNLESS AUTHORIZED BY LAW: This information has not been publicly disclosed and may be privileged and confidential. It is for internal government use only and must not be disseminated, distributed, or copied to persons not authorized to receive the information. Unauthorized disclosure may result in prosecution to the full extent of the law. 16 Small Percent of Beneficiaries Fully Exposed to the Coverage Gap * Overall Percent of Beneficiaries Reaching Their Plan’s Initial Coverage Limit. ** Does not account for other types of coverage provided by other payers, such as State Pharmaceutical Assistance Programs.

INFORMATION NOT RELEASABLE TO THE PUBLIC UNLESS AUTHORIZED BY LAW: This information has not been publicly disclosed and may be privileged and confidential. It is for internal government use only and must not be disseminated, distributed, or copied to persons not authorized to receive the information. Unauthorized disclosure may result in prosecution to the full extent of the law. 17 Catastrophic Coverage Phase

INFORMATION NOT RELEASABLE TO THE PUBLIC UNLESS AUTHORIZED BY LAW: This information has not been publicly disclosed and may be privileged and confidential. It is for internal government use only and must not be disseminated, distributed, or copied to persons not authorized to receive the information. Unauthorized disclosure may result in prosecution to the full extent of the law. 18 Methodology: Catastrophic Coverage Analysis Catastrophic coverage codes on PDE data Beneficiary has entered the Catastrophic phase Exceeded Catastrophic Threshold Pre-defined True Out-of-Pocket (TrOOP) threshold $3,600 in 2006 $3,850 in 2007 $4,050 in 2008 $4,350 in 2009 $4,550 in 2010

INFORMATION NOT RELEASABLE TO THE PUBLIC UNLESS AUTHORIZED BY LAW: This information has not been publicly disclosed and may be privileged and confidential. It is for internal government use only and must not be disseminated, distributed, or copied to persons not authorized to receive the information. Unauthorized disclosure may result in prosecution to the full extent of the law. 19 Decrease from 2008 to 2010 in Percent of Beneficiaries Who Reached the Catastrophic Phase † Overall Percent of Beneficiaries Reaching the Catastrophic Coverage Phase

INFORMATION NOT RELEASABLE TO THE PUBLIC UNLESS AUTHORIZED BY LAW: This information has not been publicly disclosed and may be privileged and confidential. It is for internal government use only and must not be disseminated, distributed, or copied to persons not authorized to receive the information. Unauthorized disclosure may result in prosecution to the full extent of the law. 20 Coverage Gap and Catastrophic Phase: Subgroups of Beneficiaries

INFORMATION NOT RELEASABLE TO THE PUBLIC UNLESS AUTHORIZED BY LAW: This information has not been publicly disclosed and may be privileged and confidential. It is for internal government use only and must not be disseminated, distributed, or copied to persons not authorized to receive the information. Unauthorized disclosure may result in prosecution to the full extent of the law Coverage Gap and Catastrophic Phase Total Part D Population by LIS Status * Overall Percent of Beneficiaries Reaching Their 2010 Initial Coverage Limit. † Overall Percent of Beneficiaries Reaching Their 2010 Catastrophic Coverage Threshold.

INFORMATION NOT RELEASABLE TO THE PUBLIC UNLESS AUTHORIZED BY LAW: This information has not been publicly disclosed and may be privileged and confidential. It is for internal government use only and must not be disseminated, distributed, or copied to persons not authorized to receive the information. Unauthorized disclosure may result in prosecution to the full extent of the law Coverage Gap and Catastrophic Phase Total Part D Population by Plan Organization Type * Overall Percent of Beneficiaries Reaching Their 2010 Initial Coverage Limit. † Overall Percent of Beneficiaries Reaching Their 2010 Catastrophic Coverage Threshold. PDP=Prescription Drug Plan; MA-PD=Medicare Advantage Prescription Drug Plan; EMPL=Employer Plan

INFORMATION NOT RELEASABLE TO THE PUBLIC UNLESS AUTHORIZED BY LAW: This information has not been publicly disclosed and may be privileged and confidential. It is for internal government use only and must not be disseminated, distributed, or copied to persons not authorized to receive the information. Unauthorized disclosure may result in prosecution to the full extent of the law Coverage Gap and Catastrophic Phase Total Part D Population by Plan Benefit Type * Overall Percent of Beneficiaries Reaching Their 2010 Initial Coverage Limit. † Overall Percent of Beneficiaries Reaching Their 2010 Catastrophic Coverage Threshold. 158K beneficiaries were grouped in plan benefit type unknown, of these beneficiaries 4.6% entered the gap and 1.1% entered catastrophic coverage.

INFORMATION NOT RELEASABLE TO THE PUBLIC UNLESS AUTHORIZED BY LAW: This information has not been publicly disclosed and may be privileged and confidential. It is for internal government use only and must not be disseminated, distributed, or copied to persons not authorized to receive the information. Unauthorized disclosure may result in prosecution to the full extent of the law Coverage Gap and Catastrophic Phase Total Part D Population by Gender * Overall Percent of Beneficiaries Reaching Their 2010 Initial Coverage Limit. † Overall Percent of Beneficiaries Reaching Their 2010 Catastrophic Coverage Threshold.

INFORMATION NOT RELEASABLE TO THE PUBLIC UNLESS AUTHORIZED BY LAW: This information has not been publicly disclosed and may be privileged and confidential. It is for internal government use only and must not be disseminated, distributed, or copied to persons not authorized to receive the information. Unauthorized disclosure may result in prosecution to the full extent of the law Coverage Gap and Catastrophic Phase Total Part D Population by Race/Ethnicity * Overall Percent of Beneficiaries Reaching Their 2010 Initial Coverage Limit. † Overall Percent of Beneficiaries Reaching Their 2010 Catastrophic Coverage Threshold.

INFORMATION NOT RELEASABLE TO THE PUBLIC UNLESS AUTHORIZED BY LAW: This information has not been publicly disclosed and may be privileged and confidential. It is for internal government use only and must not be disseminated, distributed, or copied to persons not authorized to receive the information. Unauthorized disclosure may result in prosecution to the full extent of the law Coverage Gap and Catastrophic Phase Total Part D Population by Age * Overall Percent of Beneficiaries Reaching Their 2010 Initial Coverage Limit. † Overall Percent of Beneficiaries Reaching Their 2010 Catastrophic Coverage Threshold.

INFORMATION NOT RELEASABLE TO THE PUBLIC UNLESS AUTHORIZED BY LAW: This information has not been publicly disclosed and may be privileged and confidential. It is for internal government use only and must not be disseminated, distributed, or copied to persons not authorized to receive the information. Unauthorized disclosure may result in prosecution to the full extent of the law Coverage Gap and Catastrophic Phase Total Part D Population by Residential Setting * Overall Percent of Beneficiaries Reaching Their 2010 Initial Coverage Limit. † Overall Percent of Beneficiaries Reaching Their 2010 Catastrophic Coverage Threshold. 19K beneficiaries were grouped in residential setting type unknown, of these beneficiaries 9.0% entered the gap and 2.0% entered catastrophic coverage.

INFORMATION NOT RELEASABLE TO THE PUBLIC UNLESS AUTHORIZED BY LAW: This information has not been publicly disclosed and may be privileged and confidential. It is for internal government use only and must not be disseminated, distributed, or copied to persons not authorized to receive the information. Unauthorized disclosure may result in prosecution to the full extent of the law Coverage Gap and Catastrophic Phase Total Part D Population by Geographic Region Coverage Gap * Overall Percent of Beneficiaries Reaching Their 2010 Initial Coverage Limit. † Overall Percent of Beneficiaries Reaching Their 2010 Catastrophic Coverage Threshold. Catastrophic Phase

INFORMATION NOT RELEASABLE TO THE PUBLIC UNLESS AUTHORIZED BY LAW: This information has not been publicly disclosed and may be privileged and confidential. It is for internal government use only and must not be disseminated, distributed, or copied to persons not authorized to receive the information. Unauthorized disclosure may result in prosecution to the full extent of the law. 29 Time in Coverage Gap and Catastrophic Coverage Phase

INFORMATION NOT RELEASABLE TO THE PUBLIC UNLESS AUTHORIZED BY LAW: This information has not been publicly disclosed and may be privileged and confidential. It is for internal government use only and must not be disseminated, distributed, or copied to persons not authorized to receive the information. Unauthorized disclosure may result in prosecution to the full extent of the law. 30 How Long Do Beneficiaries Spend in Each Phase of the Benefit? In 2010, 71.8% of Part D enrollees (21.3M) never reached the ICL. 28.2% of enrollees (8.4M) reached the ICL Mean time to reach coverage gap = 6.7 months Mean time spent after reaching coverage gap to end of enrollment or catastrophic coverage = 3.9 months 8.0% of enrollees (2.4M) reached the catastrophic coverage phase Mean time spent in catastrophic phase = 4.2 months

INFORMATION NOT RELEASABLE TO THE PUBLIC UNLESS AUTHORIZED BY LAW: This information has not been publicly disclosed and may be privileged and confidential. It is for internal government use only and must not be disseminated, distributed, or copied to persons not authorized to receive the information. Unauthorized disclosure may result in prosecution to the full extent of the law. 31 Average Time to Reach Gap or Catastrophic Phase has Remained Constant *Average time spent in each phase for Part D beneficiaries that experienced phase for given year.

INFORMATION NOT RELEASABLE TO THE PUBLIC UNLESS AUTHORIZED BY LAW: This information has not been publicly disclosed and may be privileged and confidential. It is for internal government use only and must not be disseminated, distributed, or copied to persons not authorized to receive the information. Unauthorized disclosure may result in prosecution to the full extent of the law. 32 Time in Part D Benefit Phases Varied by Beneficiary Subgroups (Part I) GroupAverage months spent in 2010: Pre-ICL Average months spent in 2010: Coverage Gap Average months spent in 2010: Catastrophic Coverage Overall LIS Status LIS Non-LIS Gender Males Female Race/Ethnicity Asian Black Hispanic North American/Native White Other/Unknown Residential Setting Urban Rural Territory

INFORMATION NOT RELEASABLE TO THE PUBLIC UNLESS AUTHORIZED BY LAW: This information has not been publicly disclosed and may be privileged and confidential. It is for internal government use only and must not be disseminated, distributed, or copied to persons not authorized to receive the information. Unauthorized disclosure may result in prosecution to the full extent of the law. 33 Time in Part D Benefit Phases Varied by Beneficiary Subgroups (Part II) GroupAverage months spent in 2010: Pre-ICL Average months spent in 2010: Coverage Gap Average months spent in 2010: Catastrophic Coverage Overall Plan Benefit Type Defined Standard Actuarial Equivalent Standard Basic Alternative Enhanced Alternative Plan Organization Type PDP MA-PD Plans Employer Plans

INFORMATION NOT RELEASABLE TO THE PUBLIC UNLESS AUTHORIZED BY LAW: This information has not been publicly disclosed and may be privileged and confidential. It is for internal government use only and must not be disseminated, distributed, or copied to persons not authorized to receive the information. Unauthorized disclosure may result in prosecution to the full extent of the law. 34 Summary Trends in percent of beneficiaries that entered Part D coverage gap and catastrophic phase were similar between 2008 and 2010 Approximately one-third of all beneficiaries in each year from exceeded their ICL However, this was meaningful to only about one-tenth of all enrollees in any year (i.e. non-LIS) Enrollees who were LIS, under 65, female, of minority race (specifically Asian population), or of rural residence exceed the ICL more than other subgroups from Time spent in the coverage gap and the catastrophic coverage phase varied little from year to year on average; however differences were seen with beneficiary subgroups and different plan designs

INFORMATION NOT RELEASABLE TO THE PUBLIC UNLESS AUTHORIZED BY LAW: This information has not been publicly disclosed and may be privileged and confidential. It is for internal government use only and must not be disseminated, distributed, or copied to persons not authorized to receive the information. Unauthorized disclosure may result in prosecution to the full extent of the law. 35 Assessments

INFORMATION NOT RELEASABLE TO THE PUBLIC UNLESS AUTHORIZED BY LAW: This information has not been publicly disclosed and may be privileged and confidential. It is for internal government use only and must not be disseminated, distributed, or copied to persons not authorized to receive the information. Unauthorized disclosure may result in prosecution to the full extent of the law. 36 Assessment Question 1 What is the range in the percentage of beneficiaries who enter the coverage gap from ? 50% - 59% 28% - 30% 35% - 42% 11% - 15%

INFORMATION NOT RELEASABLE TO THE PUBLIC UNLESS AUTHORIZED BY LAW: This information has not been publicly disclosed and may be privileged and confidential. It is for internal government use only and must not be disseminated, distributed, or copied to persons not authorized to receive the information. Unauthorized disclosure may result in prosecution to the full extent of the law. 37 Assessment Question 2 Which of the following provides an overall representation of beneficiaries who exceed the ICL? LIS, Over 65 years, female, minority race, or rural residence Non- LIS, Over 65 years, female, minority race, or urban residence LIS, Under 65 years, female, minority race, or rural residence Non-LIS, Under 65 years, female, minority race, or urban residence

INFORMATION NOT RELEASABLE TO THE PUBLIC UNLESS AUTHORIZED BY LAW: This information has not been publicly disclosed and may be privileged and confidential. It is for internal government use only and must not be disseminated, distributed, or copied to persons not authorized to receive the information. Unauthorized disclosure may result in prosecution to the full extent of the law. 38 Questions?

INFORMATION NOT RELEASABLE TO THE PUBLIC UNLESS AUTHORIZED BY LAW: This information has not been publicly disclosed and may be privileged and confidential. It is for internal government use only and must not be disseminated, distributed, or copied to persons not authorized to receive the information. Unauthorized disclosure may result in prosecution to the full extent of the law. 39 Contact Information For more information please contact: Confidence M. Gbarayor, Ph.D., MPH

INFORMATION NOT RELEASABLE TO THE PUBLIC UNLESS AUTHORIZED BY LAW: This information has not been publicly disclosed and may be privileged and confidential. It is for internal government use only and must not be disseminated, distributed, or copied to persons not authorized to receive the information. Unauthorized disclosure may result in prosecution to the full extent of the law. 40 Presentation Evaluation Please get your ARS Response Card ready